How is the Software Industry reacting to the most current geo-political issues? Is there a change in distribution of new Technology Centers? Which countries are becoming the favourite destinations?
Director in Manufacturing, 1,001 - 5,000 employees
My long-term experience has shown consistency in strategy from most large corporations. Lower Cost is #1. Which countries are investing in their education systems, and have a cost of living (cost of resources) which is well below that of the USA, UK, Germany etc. ?? We had made significant investments in India in the past, but that leveled off over 6+ years ago. Pay scales for top talent in India were equal to many in the USA. We still hire there, but it's no longer the top choice. The past 6 years we have hired more IT people from Brno and Prague Czechia, as well as several cities in Mexico. We have considered other countries in South America too, for time zone alignment. Primarily Panama and Costa Rica.
Time changes everything though. When I joined (a LONG TIME AGO), about 80% of all employees in any function were in USA, and the rest across Europe. Now USA is probably only 25% of total employee population and probably only 10% of the IT population. Large corporations will focus on cost first. The geo-political issues are a consideration, but if the concentration of employees (and in particular IT/Engineering employees) remains diversified across many countries, strategies won't change. Unless a wide scale war breaks out, there won't be strategy changes. If a wide scale war broke out, we would be in trouble as most of our supply chains for people (IT, Engineering, Customer Service) cross through many countries, and we do time zone hand-offs for development, engineering, and customer service. We would need to rebuild employee teams to be stand-alone country organized. Or at a minimum organized into global zones of self-contained functionality. If we isolated the USA and disconnected from all other countries, our company couldn't exist and function as we are staffed and organized today.
CISO in Banking, 10,001+ employees
I suspect a number of larger organisation may look at their offshoring strategies and move to more geo politically stbale countries and potential inshore more development in the longer term.Director of IT in Software, 201 - 500 employees
We work/get support from one company out of Ukraine. They moved the support to Poland before the war began, so their service has not been affected so far. This is not direct outsourcing but just support.We do not plan on switching to another vendor as long as they can still provide the support.
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We're also still playing a lot of "wait and see" with what happens in Ukraine and if any of those previous relationships are salvageable and how to approach that with other countries going forward.